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+The Project Gutenberg EBook of State of the Union Addresses
+by Gerald R. Ford
+(#35 in our series of US Presidential State of the Union Addresses)
+
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+Title: State of the Union Addresses of Gerald R. Ford
+
+Author: Gerald R. Ford
+
+Release Date: February, 2004  [EBook #5044]
+[Yes, we are more than one year ahead of schedule]
+[This file was first posted on April 11, 2002]
+
+Edition: 10
+
+Language: English
+
+Character set encoding: ASCII
+
+*** START OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY GERALD R. FORD ***
+
+
+
+
+This eBook was produced by James Linden.
+
+The addresses are separated by three asterisks: ***
+
+Dates of addresses by Gerald R. Ford in this eBook:
+  January 15, 1975
+  January 19, 1976
+  January 12, 1977
+
+
+
+***
+
+State of the Union Address
+Gerald R. Ford
+January 15, 1975
+
+Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and
+distinguished guests:
+
+Twenty-six years ago, a freshman Congressman, a young fellow with lots of
+idealism who was out to change the world, stood before Sam Rayburn in the
+well of the House and solemnly swore to the same oath that all of you took
+yesterday--an unforgettable experience, and I congratulate you all.
+
+Two days later, that same freshman stood at the back of this great
+Chamber-over there someplace--as President Truman, all charged up by his
+single-handed election victory, reported as the Constitution requires on
+the state of the Union.
+
+When the bipartisan applause stopped, President Truman said, "I am happy to
+report to this 81st Congress that the state of the Union is good. Our
+Nation is better able than ever before to meet the needs of the American
+people, and to give them their fair chance in the pursuit of happiness.
+[It] is foremost among the nations of the world in the search for peace."
+
+Today, that freshman Member from Michigan stands where Mr. Truman
+
+stood, and I must say to you that the state of the Union is not good:
+Millions of Americans are out of work.
+
+Recession and inflation are eroding the money of millions more.
+
+Prices are too high, and sales are too slow.
+
+This year's Federal deficit will be about $30 billion; next year's probably
+$45 billion.
+
+The national debt will rise to over $500 billion.
+
+Our plant capacity and productivity are not increasing fast enough.
+
+We depend on others for essential energy.
+
+Some people question their Government's ability to make hard decisions and
+stick with them; they expect Washington politics as usual.
+
+Yet, what President Truman said on January 5, 1949, is even more true in
+1975. We are better able to meet our people's needs. All Americans do have
+a fairer chance to pursue happiness. Not only are we still the foremost
+nation in the pursuit of peace but today's prospects of attaining it are
+infinitely brighter.
+
+There were 59 million Americans employed at the start of 1949; now there
+are more than 85 million Americans who have jobs. In comparable dollars,
+the average income of the American family has doubled during the past 26
+years.
+
+Now, I want to speak very bluntly. I've got bad news, and I don't expect
+much, if any, applause. The American people want action, and it will take
+both the Congress and the President to give them what they want. Progress
+and solutions can be achieved, and they will be achieved.
+
+My message today is not intended to address all of the complex needs of
+America. I will send separate messages making specific recommendations for
+domestic legislation, such as the extension of general revenue sharing and
+the Voting Rights Act.
+
+The moment has come to move in a new direction. We can do this by
+fashioning a new partnership between the Congress on the one hand, the
+White House on the other, and the people we both represent.
+
+Let us mobilize the most powerful and most creative industrial nation that
+ever existed on this Earth to put all our people to work. The emphasis on
+our economic efforts must now shift from inflation to jobs.
+
+To bolster business and industry and to create new jobs, I propose a 1-year
+tax reduction of $16 billion. Three-quarters would go to individuals and
+one-quarter to promote business investment.
+
+This cash rebate to individuals amounts to 12 percent of 1974 tax
+payments-a total cut of $12 billion, with a maximum of $1,000 per return.
+
+I call on the Congress to act by April 1. If you do--and I hope you
+will--the Treasury can send the first check for half of the rebate in May
+and the second by September.
+
+The other one-fourth of the cut, about $4 billion, will go to business,
+including farms, to promote expansion and to create more jobs. The 1-year
+reduction for businesses would be in the form of a liberalized investment
+tax credit increasing the rate to 12 percent for all businesses.
+
+This tax cut does not include the more fundamental reforms needed in our
+tax system. But it points us in the right direction--allowing taxpayers
+rather than the Government to spend their pay.
+
+Cutting taxes now is essential if we are to turn the economy around. A tax
+cut offers the best hope of creating more jobs. Unfortunately, it will
+increase the size of the budget deficit. Therefore, it is more important
+than ever that we take steps to control the growth of Federal
+expenditures.
+
+Part of our trouble is that we have been self-indulgent. For decades, we
+have been voting ever-increasing levels of Government benefits, and now the
+bill has come due. We have been adding so many new programs that the size
+and the growth of the Federal budget has taken on a life of its own.
+
+One characteristic of these programs is that their cost increases
+automatically every year because the number of people eligible for most of
+the benefits increases every year. When these programs are enacted, there
+is no dollar amount set. No one knows what they will cost. All we know is
+that whatever they cost last year, they will cost more next year.
+
+It is a question of simple arithmetic. Unless we check the excessive growth
+of Federal expenditures or impose on ourselves matching increases in taxes,
+we will continue to run huge inflationary deficits in the Federal budget.
+
+If we project the current built-in momentum of Federal spending through the
+next 15 years, State, Federal, and local government expenditures could
+easily comprise half of our gross national product. This compares with less
+than a third in 1975.
+
+I have just concluded the process of preparing the budget submissions for
+fiscal year 1976. In that budget, I will propose legislation to restrain
+the growth of a number of existing programs. I have also concluded that no
+new spending programs can be initiated this year, except for energy.
+Further, I will not hesitate to veto any new spending programs adopted by
+the Congress.
+
+As an additional step toward putting the Federal Government's house in
+order, I recommend a 5-percent limit on Federal pay increases in 1975. In
+all Government programs tied to the Consumer Price Index--including social
+security, civil service and military retirement pay, and food stamps--I
+also propose a 1-year maximum increase of 5 percent.
+
+None of these recommended ceiling limitations, over which Congress has
+final authority, are easy to propose, because in most cases they involve
+anticipated payments to many, many deserving people. Nonetheless, it must
+be done. I must emphasize that I am not asking to eliminate, to reduce, to
+freeze these payments. I am merely recommending that we slow down the rate
+at which these payments increase and these programs grow.
+
+Only a reduction in the growth of spending can keep Federal borrowing down
+and reduce the damage to the private sector from high interest rates. Only
+a reduction in spending can make it possible for the Federal Reserve System
+to avoid an inflationary growth in the money supply and thus restore
+balance to our economy. A major reduction in the growth of Federal spending
+can help dispel the uncertainty that so many feel about our economy and put
+us on the way to curing our economic ills.
+
+If we don't act to slow down the rate of increase in Federal spending, the
+United States Treasury will be legally obligated to spend more than $360
+billion in fiscal year 1976, even if no new programs are enacted. These are
+not matters of conjecture or prediction, but again, a matter of simple
+arithmetic. The size of these numbers and their implications for our
+everyday life and the health of our economic system are shocking.
+
+I submitted to the last Congress a list of budget deferrals and
+rescissions. There will be more cuts recommended in the budget that I will
+submit. Even so, the level of outlays for fiscal year 1976 is still much,
+much too high. Not only is it too high for this year but the decisions we
+make now will inevitably have a major and growing impact on expenditure
+levels in future years. I think this is a very fundamental issue that we,
+the Congress and I, must jointly solve.
+
+Economic disruptions we and others are experiencing stem in part from the
+fact that the world price of petroleum has quadrupled in the last year. But
+in all honesty, we cannot put all of the blame on the oil-exporting
+nations. We, the United States, are not blameless. Our growing dependence
+upon foreign sources has been adding to our vulnerability for years and
+years, and we did nothing to prepare ourselves for such an event as the
+embargo of 1973.
+
+During the 1960's, this country had a surplus capacity of crude oil which
+we were able to make available to our trading partners whenever there was a
+disruption of supply. This surplus capacity enabled us to influence both
+supplies and prices of crude oil throughout the world. Our excess capacity
+neutralized any effort at establishing an effective cartel, and thus the
+rest of the world was assured of adequate supplies of oil at reasonable
+prices.
+
+By 1970, our surplus capacity had vanished, and as a consequence, the
+latent power of the oil cartel could emerge in full force. Europe and
+Japan, both heavily dependent on imported oil, now struggle to keep their
+economies in balance. Even the United States, our country, which is far
+more self-sufficient than most other industrial countries, has been .put
+under serious pressure.
+
+I am proposing a program which will begin to restore our country's surplus
+capacity in total energy. In this way, we will be able to assure ourselves
+reliable and adequate energy and help foster a new world energy stability
+for other major consuming nations.
+
+But this Nation and, in fact, the world must face the prospect of energy
+difficulties between now and 1985. This program will impose burdens on all
+of us with the aim of reducing our consumption of energy and increasing our
+production. Great attention has been paid to the considerations of
+fairness, and I can assure you that the burdens will not fall more harshly
+on those less able to bear them.
+
+I am recommending a plan to make us invulnerable to cutoffs of foreign oil.
+It will require sacrifices, but it--and this is most important--it will
+work.
+
+I have set the following national energy goals to assure that our future is
+as secure and as productive as our past:
+
+First, we must reduce oil imports by 1 million barrels per day by the end
+of this year and by 2 million barrels per day by the end of 1977.
+
+Second, we must end vulnerability to economic disruption by foreign
+suppliers by 1985.
+
+Third, we must develop our energy technology and resources so that the
+United States has the ability to supply a significant share of the energy
+needs of the free world by the end of this century.
+
+To attain these objectives, we need immediate action to cut imports.
+Unfortunately, in the short term there are only a limited number of actions
+which can increase domestic supply. I will press for all of them.
+
+I urge quick action on the necessary legislation to allow commercial
+production at the Elk Hills, California, Naval Petroleum Reserve. In order
+that we make greater use of domestic coal resources, I am submitting
+amendments to the Energy Supply and Environmental Coordination Act which
+will greatly increase the number of powerplants that can be promptly
+converted to coal.
+
+Obviously, voluntary conservation continues to be essential, but tougher
+programs are needed--and needed now. Therefore, I am using Presidential
+powers to raise the fee on all imported crude oil and petroleum products.
+The crude oil fee level will be increased $1 per barrel on February 1, by
+$2 per barrel on March 1, and by $3 per barrel on April 1. I will take
+actions to reduce undue hardships on any geographical region. The foregoing
+are interim administrative actions. They will be rescinded when the broader
+but necessary legislation is enacted.
+
+To that end, I am requesting the Congress to act within 90 days on a more
+comprehensive energy tax program. It includes: excise taxes and import fees
+totaling $2 per barrel on product imports and on all crude oil;
+deregulation of new natural gas and enactment of a natural gas excise tax.
+
+I plan to take Presidential initiative to decontrol the price of domestic
+crude oil on April 1. I urge the Congress to enact a windfall profits tax
+by that date to ensure that oil producers do not profit unduly.
+
+The sooner Congress acts, the more effective the oil conservation program
+will be and the quicker the Federal revenues can be returned to our
+people.
+
+I am prepared to use Presidential authority to limit imports, as necessary,
+to guarantee success.
+
+I want you to know that before deciding on my energy conservation program,
+I considered rationing and higher gasoline taxes as alternatives. In my
+judgment, neither would achieve the desired results and both would produce
+unacceptable inequities.
+
+A massive program must be initiated to increase energy supply, to cut
+demand, and provide new standby emergency programs to achieve the
+independence we want by 1985. The largest part of increased oil production
+must come from new frontier areas on the Outer Continental Shelf and from
+the Naval Petroleum Reserve No. 4 in Alaska. It is the intent of this
+Administration to move ahead with exploration, leasing, and production on
+those frontier areas of the Outer Continental Shelf where the environmental
+risks are acceptable.
+
+Use of our most abundant domestic resource--coal--is severely limited. We
+must strike a reasonable compromise on environmental concerns with coal. I
+am submitting Clean Air [Act] amendments which will allow greater coal use
+without sacrificing clean air goals.
+
+I vetoed the strip mining legislation passed by the last Congress.1 With
+appropriate changes, I will sign a revised version when it comes to the
+White House.
+
+1See 1974 volume, Item 326.
+
+I am proposing a number of actions to energize our nuclear power program. I
+will submit legislation to expedite nuclear leasing [licensing] and the
+rapid selection of sites.
+
+In recent months, utilities have cancelled or postponed over 60 percent of
+planned nuclear expansion and 30 percent of planned additions to
+non-nuclear capacity. Financing problems for that industry are worsening. I
+am therefore recommending that the 1-year investment tax credit of 12
+percent be extended an additional 2 years to specifically speed the
+construction of powerplants that do not use natural gas or oil. I am also
+submitting proposals for selective reform of State utility commission
+regulations.
+
+To provide the critical stability for our domestic energy production in the
+face of world price uncertainty, I will request legislation to authorize
+and require tariffs, import quotas, or price floors to protect our energy
+prices at levels which will achieve energy independence.
+
+Increasing energy supplies is not enough. We must take additional steps to
+cut long-term consumption. I therefore propose to the Congress: legislation
+to make thermal efficiency standards mandatory for all new buildings in the
+United States; a new tax credit of up to $150 for those homeowners who
+install insulation equipment; the establishment of an energy conservation
+program to help low-income families purchase insulation supplies;
+legislation to modify and defer automotive pollution standards for 5 years,
+which will enable us to improve automobile gas mileage by 40 percent by
+1980.
+
+These proposals and actions, cumulatively, can reduce our dependence on
+foreign energy supplies from 3 to 5 million barrels per day by 1985. To
+make the United States invulnerable to foreign disruption, I propose
+standby emergency legislation and a strategic storage program of 1 billion
+barrels of oil for domestic needs and 300 million barrels for national
+defense purposes.
+
+I will ask for the funds needed for energy research and development
+activities. I have established a goal of 1 million barrels of synthetic
+fuels and shale oil production per day by 1985 together with an incentive
+program to achieve it.
+
+I have a very deep belief in America's capabilities. Within the next 10
+years, my program envisions: 200 major nuclear powerplants; 250 major new
+coal mines; 150 major coal-fired powerplants; 30 major new [oil]
+refineries; 20 major new synthetic fuel plants; the drilling of many
+thousands of new oil wells; the insulation of 18 million homes; and the
+manufacturing and the sale of millions of new automobiles, trucks, and
+buses that use much less fuel.
+
+I happen to believe that we can do it. In another crisis--the one in 1942
+President Franklin D. Roosevelt said this country would build 60,000
+[50,000] military aircraft. By 1943, production in that program had reached
+125,000 aircraft annually. They did it then. We can do it now.
+
+If the Congress and the American people will work with me to attain these
+targets, they will be achieved and will be surpassed. From adversity, let
+us seize opportunity. Revenues of some $30 billion from higher energy taxes
+designed to encourage conservation must be refunded to the American people
+in a manner which corrects distortions in our tax system wrought by
+inflation.
+
+People have been pushed into higher tax brackets by inflation, with
+consequent reduction in their actual spending power. Business taxes are
+similarly distorted because inflation exaggerates reported profits,
+resulting in excessive taxes.
+
+Accordingly, I propose that future individual income taxes be reduced by
+$16.5 billion. This will be done by raising the low-income allowance and
+reducing tax rates. This continuing tax cut will primarily benefit lower-
+and middle-income taxpayers.
+
+For example, a typical family of four with a gross income of $5,600 now
+pays $185 in Federal income taxes. Under this tax cut plan, they would pay
+nothing. A family of four with a gross income of $12,500 now pays $1,260 in
+Federal taxes. My proposal reduces that total by $300. Families grossing
+$20,000 would receive a reduction of $210.
+
+Those with the very lowest incomes, who can least afford higher costs, must
+also be compensated. I propose a payment of $80 to every person 18 years of
+age and older in that very limited category.
+
+State and local governments will receive $2 billion in additional revenue
+sharing to offset their increased energy costs.
+
+To offset inflationary distortions and to generate more economic activity,
+the corporate tax rate will be reduced from 48 percent to 42 percent.
+
+Now let me turn, if I might, to the international dimension of the present
+crisis. At no time in our peacetime history has the state of the Nation
+depended more heavily on the state of the world. And seldom, if ever, has
+the state of the world depended more heavily on the state of our Nation.
+
+The economic distress is global. We will not solve it at home unless we
+help to remedy the profound economic dislocation abroad. World trade and
+monetary structure provides markets, energy, food, and vital raw
+materials--for all nations. This international system is now in jeopardy.
+
+This Nation can be proud of significant achievements in recent years in
+solving problems and crises. The Berlin agreement, the SALT agreements, our
+new relationship with China, the unprecedented efforts in the Middle East
+are immensely encouraging. But the world is not free from crisis. In a
+world of 150 nations, where nuclear technology is proliferating and
+regional conflicts continue, international security cannot be taken for
+granted.
+
+So, let there be no mistake about it: International cooperation is a vital
+factor of our lives today. This is not a moment for the American people to
+turn inward. More than ever before, our own well-being depends on America's
+determination and America's leadership in the whole wide world.
+
+We are a great Nation--spiritually, politically, militarily,
+diplomatically, and economically. America's commitment to international
+security has sustained the safety of allies and friends in many areas--in
+the Middle East, in Europe, and in Asia. Our turning away would unleash new
+instabilities, new dangers around the globe, which, in turn, would threaten
+our own security.
+
+At the end of World War II, we turned a similar challenge into an historic
+opportunity and, I might add, an historic achievement. An old order was in
+disarray; political and economic institutions were shattered. In that
+period, this Nation and its partners built new institutions, new mechanisms
+of mutual support and cooperation. Today, as then, we face an historic
+opportunity. If we act imaginatively and boldly, as we acted then, this
+period will in retrospect be seen as one of the great creative moments of
+our Nation's history. The whole world is watching to see how we respond.
+
+A resurgent American economy would do more to restore the confidence of the
+world in its own future than anything else we can do. The program that this
+Congress passes can demonstrate to the world that we have started to put
+our own house in order. If we can show that this Nation is able and willing
+to help other nations meet the common challenge, it can demonstrate that
+the United States will fulfill its responsibilities as a leader among
+nations.
+
+Quite frankly, at stake is the future of industrialized democracies, which
+have perceived their destiny in common and sustained it in common for 30
+years.
+
+The developing nations are also at a turning point. The poorest nations see
+their hopes of feeding their hungry and developing their societies
+shattered by the economic crisis. The long-term economic future for the
+producers of raw materials also depends on cooperative solutions.
+
+Our relations with the Communist countries are a basic factor of the world
+environment. We must seek to build a long-term basis for coexistence. We
+will stand by our principles. We will stand by our interests. We will act
+firmly when challenged. The kind of a world we want depends on a broad
+policy of creating mutual incentives for restraint and for cooperation.
+
+As we move forward to meet our global challenges and opportunities, we must
+have the tools to do the job.
+
+Our military forces are strong and ready. This military strength deters
+aggression against our allies, stabilizes our relations with former
+adversaries, and protects our homeland. Fully adequate conventional and
+strategic forces cost many, many billions, but these dollars are sound
+insurance for our safety and for a more peaceful world.
+
+Military strength alone is not sufficient. Effective diplomacy is also
+essential in preventing conflict, in building world understanding. The
+Vladivostok negotiations with the Soviet Union represent a major step in
+moderating strategic arms competition. My recent discussions with the
+leaders of the Atlantic community, Japan, and South Korea have contributed
+to meeting the common challenge.
+
+But we have serious problems before us that require cooperation between the
+President and the Congress. By the Constitution and tradition, the
+execution of foreign policy is the responsibility of the President.
+
+In recent years, under the stress of the Vietnam war, legislative
+restrictions on the President's ability to execute foreign policy and
+military decisions have proliferated. As a Member of the Congress, I
+opposed some and I approved others. As President, I welcome the advice and
+cooperation of the House and the Senate.
+
+But if our foreign policy is to be successful, we cannot rigidly restrict
+in legislation the ability of the President to act. The conduct of
+negotiations is ill-suited to such limitations. Legislative restrictions,
+intended for the best motives and purposes, can have the opposite result,
+as we have seen most recently in our trade relations with the Soviet
+Union.
+
+For my part, I pledge this Administration will act in the closest
+consultation with the Congress as we face delicate situations and troubled
+times throughout the globe.
+
+When I became President only 5 months ago, I promised the last Congress a
+policy of communication, conciliation, compromise, and cooperation. I renew
+that pledge to the new Members of this Congress.
+
+Let me sum it up. America needs a new direction, which I have sought to
+chart here today--a change of course which will: put the unemployed back to
+work; increase real income and production; restrain the growth of Federal
+Government spending; achieve energy independence; and advance the cause of
+world understanding.
+
+We have the ability. We have the know-how. In partnership with the American
+people, we will achieve these objectives.
+
+As our 200th anniversary approaches, we owe it to ourselves and to
+posterity to rebuild our political and economic strength. Let us make
+America once again and for centuries more to come what it has so long
+been--a stronghold and a beacon-light of liberty for the whole world.
+
+Thank you.
+
+***
+
+State of the Union Address
+Gerald R. Ford
+January 19, 1976
+
+Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and
+distinguished guests:
+
+As we begin our Bicentennial, America is still one of the youngest nations
+in recorded history. Long before our forefathers came to these shores, men
+and women had been struggling on this planet to forge a better life for
+themselves and their families.
+
+In man's long, upward march from savagery and slavery--throughout the
+nearly 2,000 years of the Christian calendar, the nearly 6,000 years of
+Jewish reckoning--there have been many deep, terrifying valleys, but also
+many bright and towering peaks.
+
+One peak stands highest in the ranges of human history. One example shines
+forth of a people uniting to produce abundance and to share the good life
+fairly and with freedom. One union holds out the promise of justice and
+opportunity for every citizen: That union is the United States of America.
+
+We have not remade paradise on Earth. We know perfection will not be found
+here. But think for a minute how far we have come in 200 years.
+
+We came from many roots, and we have many branches. Yet all Americans
+across the eight generations that separate us from the stirring deeds of
+1776, those who know no other homeland and those who just found refuge
+among our shores, say in unison:
+
+I am proud of America, and I am proud to be an American. Life will be a
+little better here for my children than for me. I believe this not because
+I am told to believe it, but because life has been better for me than it
+was for my father and my mother. I know it will be better for my children
+because my hands, my brains, my voice, and my vote can help make it
+happen.
+
+It has happened here in America. It has happened to you and to me.
+Government exists to create and preserve conditions in which people can
+translate their ideas into practical reality. In the best of times, much is
+lost in translation. But we try. Sometimes we have tried and failed. Always
+we have had the best of intentions.
+
+But in the recent past, we sometimes forgot the sound principles that
+guided us through most of our history. We wanted to accomplish great things
+and solve age-old problems. And we became overconfident of our abilities.
+We tried to be a policeman abroad and the indulgent parent here at home.
+
+We thought we could transform the country through massive national
+programs, but often the programs did not work. Too often they only made
+things worse. In our rush to accomplish great deeds quickly, we trampled on
+sound principles of restraint and endangered the rights of individuals. We
+unbalanced our economic system by the huge and unprecedented growth of
+Federal expenditures and borrowing. And we were not totally honest with
+ourselves about how much these programs would cost and how we would pay for
+them. Finally, we shifted our emphasis from defense to domestic problems
+while our adversaries continued a massive buildup of arms.
+
+The time has now come for a fundamentally different approach for a new
+realism that is true to the great principles upon which this Nation was
+founded.
+
+We must introduce a new balance to our economy--a balance that favors not
+only sound, active government but also a much more vigorous, healthy
+economy that can create new jobs and hold down prices.
+
+We must introduce a new balance in the relationship between the individual
+and the government--a balance that favors greater individual freedom and
+self-reliance.
+
+We must strike a new balance in our system of federalism--a balance that
+favors greater responsibility and freedom for the leaders of our State and
+local governments.
+
+We must introduce a new balance between the spending on domestic programs
+and spending on defense--a balance that ensures we will fully meet our
+obligation to the needy while also protecting our security in a world that
+is still hostile to freedom.
+
+And in all that we do, we must be more honest with the American people,
+promising them no more than we can deliver and delivering all that we
+promise.
+
+The genius of America has been its incredible ability to improve the lives
+of its citizens through a unique combination of governmental and free
+citizen activity.
+
+History and experience tells us that moral progress cannot come in
+comfortable and in complacent times, but out of trial and out of confusion.
+Tom Paine aroused the troubled Americans of 1776 to stand up to the times
+that try men's souls because the harder the conflict, the more glorious the
+triumph.
+
+Just a year ago I reported that the state of the Union was not good.
+Tonight, I report that the state of our Union is better--in many ways a lot
+better--but still not good enough.
+
+To paraphrase Tom Paine, 1975 was not a year for summer soldiers and sum
+shine patriots. It was a year of fears and alarms and of dire
+forecasts--most of which never happened and won't happen.
+
+As you recall, the year 1975 opened with rancor and with bitterness.
+Political misdeeds of the past had neither been forgotten nor forgiven. The
+longest, most divisive war in our history was winding toward an unhappy
+conclusion. Many feared that the end of that foreign war of men and
+machines meant the beginning of a domestic war of recrimination and
+reprisal. Friends and adversaries abroad were asking whether America had
+lost its nerve. Finally, our economy was ravaged by inflation--inflation
+that was plunging us into the worse recession in four decades. At the same
+time, Americans became increasingly alienated from big institutions. They
+were steadily losing confidence, not just in big government but in big
+business, big labor, and big education, among others. Ours was a troubled
+land.
+
+And so, 1975 was a year of hard decisions, difficult compromises, and a new
+realism that taught us something important about America. It brought back a
+needed measure of common sense, steadfastness, and self-discipline.
+
+Americans did not panic or demand instant but useless cures. In all
+sectors, people met their difficult problems with the restraint and with
+responsibility worthy of their great heritage.
+
+Add up the separate pieces of progress in 1975, subtract the setbacks, and
+the sum total shows that we are not only headed in a new direction, a
+direction which I proposed 12 months ago, but it turned out to be the right
+direction.
+
+It is the right direction because it follows the truly revolutionary
+American concept of 1776, which holds that in a free society the making of
+public policy and successful problemsolving involves much more than
+government. It involves a full partnership among all branches and all
+levels of government, private institutions, and individual citizens.
+
+Common sense tells me to stick to that steady course.
+
+Take the state of our economy. Last January, most things were rapidly
+getting worse. This January, most things are slowly but surely getting
+better.
+
+The worst recession since World War II turned around in April. The best
+cost-of-living news of the past year is that double-digit inflation of 12
+percent or higher was cut almost in half. The worst--unemployment remains
+far too high.
+
+Today, nearly 1,700,000 more Americans are working than at the bottom of
+the recession. At year's end, people were again being hired much faster
+than they Were being laid off.
+
+Yet, let's be honest. Many Americans have not yet felt these changes in
+their daily lives. They still see prices going up far too fast, and they
+still know the fear of unemployment.
+
+We are also a growing nation. We need more and more jobs every year.
+Today's economy has produced over 85 million jobs for Americans, but we
+need a lot more jobs, especially for the young.
+
+My first objective is to have sound economic growth without inflation.
+
+We all know from recent experience what runaway inflation does to ruin
+every other worthy purpose. We are slowing it. We must stop it cold.
+
+For many Americans, the way to a healthy, noninflationary economy has
+become increasingly apparent. The Government must stop spending so much and
+stop borrowing so much of our money. More money must remain in private
+hands where it will do the most good. To hold down the cost of living, we
+must hold down the cost of government.
+
+In the past decade, the Federal budget has been growing at an average rate
+of over 10 percent a year. The budget I am submitting Wednesday cuts this
+rate of growth in half. I have kept my promise to submit a budget for the
+next fiscal year of $395 billion. In fact, it is $394.2 billion.
+
+By holding down the growth of Federal spending, we can afford additional
+tax cuts and return to the people who pay taxes more decisionmaking power
+over their own lives.
+
+Last month I signed legislation to extend the 1975 tax reductions for the
+first 6 months of this year. I now propose that effective July 1, 1976, we
+give our taxpayers a tax cut of approximately $10 billion more than
+Congress agreed to in December.
+
+My broader tax reduction would mean that for a family of four making
+$15,000 a year, there will be $227 more in take-home pay annually.
+Hardworking Americans caught in the middle can really use that kind of
+extra cash.
+
+My recommendations for a firm restraint on the growth of Federal spending
+and for greater tax reduction are simple and straightforward. For every
+dollar saved in cutting the growth in the Federal budget, we can have an
+added dollar of Federal tax reduction.
+
+We can achieve a balanced budget by 1979 if we have the courage and the
+wisdom to continue to reduce the growth of Federal spending.
+
+One test of a healthy economy is a job for every American who wants to
+work. Government--our kind of government--cannot create that many jobs. But
+the Federal Government can create conditions and incentives for private
+business and industry to make more and more jobs.
+
+Five out of six jobs in this country are in private business and in
+industry. Common sense tells us this is the place to look for more jobs and
+to find them faster. I mean real, rewarding, permanent jobs.
+
+To achieve this we must offer the American people greater incentives to
+invest in the future. My tax proposals are a major step in that direction.
+To supplement these proposals, I ask that Congress enact changes in Federal
+tax laws that will speed up plant expansion and the purchase of new
+equipment. My recommendations will concentrate this job-creation tax
+incentive in areas where the unemployment rate now runs over 7 percent.
+Legislation to get this started must be approved at the earliest possible
+date.
+
+Within the strict budget total that I will recommend for the coming year, I
+will ask for additional housing assistance for 500,000 families. These
+programs will expand housing opportunities, spur construction, and help to
+house moderate- and low-income families.
+
+We had a disappointing year in the housing industry in 1975. But with lower
+interest rates and available mortgage money, we can have a healthy recovery
+in 1976.
+
+A necessary condition of a healthy economy is freedom from the petty
+tyranny of massive government regulation. We are wasting literally millions
+of working hours costing billions of taxpayers' and consumers' dollars
+because of bureaucratic redtape. The American farmer, who now feeds 215
+million Americans, but also millions worldwide, has shown how touch more he
+can produce without the shackles of government control.
+
+Now, we badly need reforms in other key areas in our economy: the airlines,
+trucking, railroads, and financial institutions. I have submitted concrete
+plans in each of these areas, not to help this or that industry, but to
+foster competition and to bring prices down for the consumer.
+
+This administration, in addition, will strictly enforce the Federal
+antitrust laws for the very same purposes.
+
+Taking a longer look at America's future, there can be neither sustained
+growth nor more jobs unless we continue to have an assured supply of energy
+to run our economy. Domestic production of oil and gas is still declining.
+Our dependence on foreign oil at high prices is still too great, draining
+jobs and dollars away from our own economy at the rate of $125 per year for
+every American.
+
+Last month, I signed a compromise national energy bill which enacts a part
+of my comprehensive energy independence program. This legislation was late,
+not the complete answer to energy independence, but still a start in the
+right direction.
+
+I again urge the Congress to move ahead immediately on the remainder of my
+energy proposals to make America invulnerable to the foreign oil cartel.
+
+My proposals, as all of you know, would reduce domestic natural gas
+shortages; allow production from Federal petroleum reserves; stimulate
+effective conservation, including revitalization of our railroads and the
+expansion of our urban transportation systems; develop more and cleaner
+energy from our vast coal resources; expedite clean and safe nuclear power
+production; create a new national energy independence authority to
+stimulate vital energy investment; and accelerate development of technology
+to capture energy from the Sun and the Earth for this and future
+generations.
+
+Also, I ask, for the sake of future generations, that we preserve the
+family farm and family-owned small business. Both strengthen America and
+give stability to our economy. I will propose estate tax changes so that
+family businesses and family farms can be handed down from generation to
+generation without having to be sold to pay taxes.
+
+I propose tax changes to encourage people to invest in America's future,
+and their own, through a plan that gives moderate-income families income
+tax benefits if they make long-term investments in common stock in American
+companies.
+
+The Federal Government must and will respond to clear-cut national
+needs-for this and future generations.
+
+Hospital and medical services in America are among the best in the world,
+but the cost of a serious and extended illness can quickly wipe out a
+family's lifetime savings. Increasing health costs are of deep concern to
+all and a powerful force pushing up the cost of living. The burden of
+catastrophic illness can be borne by very few in our society. We must
+eliminate this fear from every family.
+
+I propose catastrophic health insurance for everybody covered by Medicare.
+To finance this added protection, fees for short-term care will go up
+somewhat, but nobody after reaching age 65 will have to pay more than $500
+a year for covered hospital or nursing home care, nor more than $250 for 1
+year's doctor bills.
+
+We cannot realistically afford federally dictated national health insurance
+providing full coverage for all 215 million Americans. The experience of
+other countries raises questions about the quality as well as the cost of
+such plans. But I do envision the day when we may use the private health
+insurance system to offer more middle-income families high quality health
+services at prices they can afford and shield them also from their
+catastrophic illnesses.
+
+Using resources now available, I propose improving the Medicare and other
+Federal health programs to help those who really need protection--older
+people and the poor. To help States and local governments give better
+health care to the poor, I propose that we combine 16 existing Federal
+programs, including Medicaid, into a single $10 billion Federal grant.
+
+Funds would be divided among States under a new formula which provides a
+larger share of Federal money to those States that have a larger share of
+low-income families.
+
+I will take further steps to improve the quality of medical and hospital
+care for those who have served in our Armed Forces.
+
+Now let me speak about social security. Our Federal social security system
+for people who have worked and contributed to it for all their lives is a
+vital part of our economic system. Its value is no longer debatable. In my
+budget for fiscal year 1977, I am recommending that the full cost-of-living
+increases in the social security benefits be paid during the coming year.
+
+But I am concerned about the integrity of our Social Security Trust Fund
+that enables people--those retired and those still working who will
+retire--to count on this source of retirement income. Younger workers watch
+their deductions rise and wonder if they will be adequately protected in
+the future. We must meet this challenge head on. Simple arithmetic warns
+all of us that the Social Security Trust Fund is headed for trouble. Unless
+we act soon to make sure the fund takes in as much as it pays out, there
+will be no security for old or for young.
+
+I must, therefore, recommend a three-tenths of 1 percent increase in both
+employer and employee social security taxes effective January 1, 1977. This
+will cost each covered employee less than 1 extra dollar a week and will
+ensure the integrity of the trust fund.
+
+As we rebuild our economy, we have a continuing responsibility to provide a
+temporary cushion to the unemployed. At my request, the Congress enacted
+two extensions and two expansions in unemployment insurance which helped
+those who were jobless during 1975. These programs will continue in 1976.
+
+In my fiscal year 1977 budget, I am also requesting funds to continue
+proven job training and employment opportunity programs for millions of
+other Americans.
+
+Compassion and a sense of community--two of America's greatest strengths
+throughout our history-- tell us we must take care of our neighbors who
+cannot take care of themselves. The host of Federal programs in this field
+reflect our generosity as a people.
+
+But everyone realizes that when it comes to welfare, government at all
+levels is not doing the job well. Too many of our welfare programs are
+inequitable and invite abuse. Too many of our welfare programs have
+problems from beginning to end. Worse, we are wasting badly needed
+resources without reaching many of the truly needy.
+
+Complex welfare programs cannot be reformed overnight. Surely we cannot
+simply dump welfare into the laps of the 50 States, their local taxpayers,
+or their private charities, and just walk away from it. Nor is it the right
+time for massive and sweeping changes while we are still recovering from
+the recession.
+
+Nevertheless, there are still plenty of improvements that we can make. I
+will ask Congress for Presidential authority to tighten up the rules for
+eligibility and benefits.
+
+Last year I twice sought long overdue reform of the scandal-riddled food
+stamp program. This year I say again: Let's give food stamps to those most
+in need. Let's not give any to those who don't need them.
+
+Protecting the life and property of the citizen at home is the
+responsibility of all public officials, but is primarily the job of local
+and State law enforcement authorities.
+
+Americans have always found the very thought of a Federal police force
+repugnant, and so do I. But there are proper ways in which we can help to
+insure domestic tranquility as the Constitution charges us.
+
+My recommendations on how to control violent crime were submitted to the
+Congress last June with strong emphasis on protecting the innocent victims
+of crime. To keep a convicted criminal from committing more crimes, we must
+put him in prison so he cannot harm more law-abiding citizens. To be
+effective, this punishment must be swift and it must be certain.
+
+Too often, criminals are not sent to prison after conviction but are
+allowed to return to the streets. Some judges are reluctant to send
+convicted criminals to prison because of inadequate facilities. To
+alleviate this problem at the Federal level, my new budget proposes the
+construction of four new Federal facilities.
+
+To speed Federal justice, I propose an increase this year in the United
+States attorneys prosecuting Federal crimes and the reinforcement of the
+number of United States marshals. Additional Federal judges are needed, as
+recommended by me and the Judicial Conference.
+
+Another major threat to every American's person and property is the
+criminal carrying a handgun. The way to cut down on the criminal use of
+guns is not to take guns away from the law-abiding citizen, but to impose
+mandatory sentences for crimes in which a gun is used, make it harder to
+obtain cheap guns for criminal purposes, and concentrate gun control
+enforcement in highcrime areas.
+
+My budget recommends 500 additional Federal agents in the 11 largest
+metropolitan high-crime areas to help local authorities stop criminals from
+selling and using handguns.
+
+The sale of hard drugs is tragically on the increase again. I have directed
+all agencies of the Federal Government to step up law enforcement efforts
+against those who deal in drugs. In 1975, I am glad to report, Federal
+agents seized substantially more heroin coming into our country than in
+1974.
+
+As President, I have talked personally with the leaders of Mexico,
+Colombia, and Turkey to urge greater efforts by their Governments to
+control effectively the production and shipment of hard drugs.
+
+I recommended months ago that the Congress enact mandatory fixed sentences
+for persons convicted of Federal crimes involving the sale of hard drugs.
+Hard drugs, we all know, degrade the spirit as they destroy the body of
+their users.
+
+It is unrealistic and misleading to hold out the hope that the Federal
+Government can move into every neighborhood and clean up crime. Under the
+Constitution, the greatest responsibility for curbing crime lies with State
+and local authorities. They are the frontline fighters in the war against
+crime.
+
+There are definite ways in which the Federal Government can help them. I
+will propose in the new budget that Congress authorize almost $7 billion
+over the next 5 years to assist State and local governments to protect the
+safety and property of all their citizens.
+
+As President, I pledge the strict enforcement of Federal laws and--by
+example, support, and leadership--to help State and local authorities
+enforce their laws. Together, we must protect the victims of crime and
+ensure domestic tranquility.
+
+Last year I strongly recommended a 5-year extension of the existing revenue
+sharing legislation, which thus far has provided $23½ billion to help State
+and local units of government solve problems at home. This program has been
+effective with decisionmaking transferred from the Federal Government to
+locally elected officials. Congress must act this year, or State and local
+units of government will have to drop programs or raise local taxes.
+
+Including my health care program reforms, I propose to consolidate some 59
+separate Federal programs and provide flexible Federal dollar grants to
+help States, cities, and local agencies in such important areas as
+education, child nutrition, and social services. This flexible system will
+do the job better and do it closer to home.
+
+The protection of the lives and property of Americans from foreign enemies
+is one of my primary responsibilities as President.
+
+In a world of instant communications and intercontinental ballistic
+missiles, in a world economy that is global and interdependent, our
+relations with other nations become more, not less, important to the lives
+of Americans.
+
+America has had a unique role in the world since the day of our
+independence 200 years ago. And ever since the end of World War II, we have
+borne--successfully--a heavy responsibility for ensuring a stable world
+order and hope for human progress.
+
+Today, the state of our foreign policy is sound and strong. We are at
+peace, and I will do all in my power to keep it that way.
+
+Our military forces are capable and ready. Our military power is without
+equal, and I intend to keep it that way.
+
+Our principal alliances with the industrial democracies of the Atlantic
+community and Japan have never been more solid.
+
+A further agreement to limit the strategic arms race may be achieved.
+
+We have an improving relationship with China, the world's most populous
+nation.
+
+The key elements for peace among the nations of the Middle East now exist.
+Our traditional friendships in Latin America, Africa, and Asia continue.
+
+We have taken the role of leadership in launching a serious and hopeful
+dialog between the industrial world and the developing world.
+
+We have helped to achieve significant reform of the international monetary
+system.
+
+We should be proud of what America, what our country, has accomplished in
+these areas, and I believe the American people are.
+
+The American people have heard too much about how terrible our mistakes,
+how evil our deeds, and how misguided our purposes. The American people
+know better.
+
+The truth is we are the world's greatest democracy. We remain the symbol of
+man's aspiration for liberty and well-being. We are the embodiment of hope
+for progress.
+
+I say it is time we quit downgrading ourselves as a nation. Of course, it
+is our responsibility to learn the right lesson from past mistakes. It is
+our duty to see that they never happen again. But our greater duty is to
+look to the future. The world's troubles will not go away.
+
+The American people want strong and effective international and defense
+policies. In our constitutional system, these policies should reflect
+consultation and accommodation between the President and the Congress. But
+in the final analysis, as the framers of our Constitution knew from hard
+experience, the foreign relations of the United States can be conducted
+effectively only if there is strong central direction that allows
+flexibility of action. That responsibility clearly rests with the
+President.
+
+I pledge to the American people policies which seek a secure, just, and
+peaceful world. I pledge to the Congress to work with you to that end.
+
+We must not face a future in which we can no longer help our friends, such
+as Angola, even in limited and carefully controlled ways. We must not lose
+all capacity to respond short of military intervention.
+
+Some hasty actions of the Congress during the past year--most recently in
+respect to Angola--were, in my view, very shortsighted. Unfortunately, they
+are still very much on the minds of our allies and our adversaries.
+
+A strong defense posture gives weight to our values and our views in
+international negotiations. It assures the vigor of our alliances. And it
+sustains our efforts to promote settlements of international conflicts.
+Only from a position of strength can we negotiate a balanced agreement to
+limit the growth of nuclear arms. Only a balanced agreement will serve our
+interests and minimize the threat of nuclear confrontation.
+
+The defense budget I will submit to the Congress for fiscal year 1977 will
+show an essential increase over the current year. It provides for real
+growth in purchasing power over this year's defense budget, which includes
+the cost of the all-volunteer force.
+
+We are continuing to make economies to enhance the efficiency of our
+military forces. But the budget I will submit represents the necessity of
+American strength for the real world in which we live.
+
+As conflict and rivalry persist in the world, our United States
+intelligence capabilities must be the best in the world.
+
+The crippling of our foreign intelligence services increases the danger of
+American involvement in direct armed conflict. Our adversaries are
+encouraged to attempt new adventures while our own ability to monitor
+events and to influence events short of military action is undermined.
+Without effective intelligence capability, the United States stands
+blindfolded and hobbled.
+
+In the near future, I will take actions to reform and strengthen our
+intelligence community. I ask for your positive cooperation. It is time to
+go beyond sensationalism and ensure an effective, responsible, and
+responsive intelligence capability.
+
+Tonight I have spoken about our problems at home and abroad. I have
+recommended policies that will meet the challenge of our third century. I
+have no doubt that our Union will endure, better, stronger, and with more
+individual freedom. We can see forward only dimly--1 year, 5 years, a
+generation perhaps. Like our forefathers, we know that if we meet the
+challenges of our own time with a common sense of purpose and conviction,
+if we remain true to our Constitution and to our ideals, then we can know
+that the future will be better than the past.
+
+I see America today crossing a threshold, not just because it is our
+Bicentennial but because we have been tested in adversity. We have taken a
+new look at what we want to be and what we want our Nation to become.
+
+I see America resurgent, certain once again that life will be better for
+our children than it is for us, seeking strength that cannot be counted in
+megatons and riches that cannot be eroded by inflation.
+
+I see these United States of America moving forward as before toward a more
+perfect Union where the government serves and the people rule.
+
+We will not make this happen simply by making speeches, good or bad, yours
+or mine, but by hard work and hard decisions made with courage and with
+common sense.
+
+I have heard many inspiring Presidential speeches, but the words I remember
+best were spoken by Dwight D. Eisenhower. "America is not good because' it
+is great," the President said. "America is great because it is good."
+
+President Eisenhower was raised in a poor but religious home in the heart
+of America. His simple words echoed President Lincoln's eloquent testament
+that "right makes might." And Lincoln in turn evoked the silent image of
+George Washington kneeling in prayer at Valley Forge.
+
+So, all these magic memories which link eight generations of Americans are
+summed up in the inscription just above me. How many times have we seen it?
+"In God We Trust."
+
+Let us engrave it now in each of our hearts as we begin our Bicentennial.
+
+***
+
+State of the Union Address
+Gerald R. Ford
+January 12, 1977
+
+Mr. Speaker, Mr. Vice President, Members of the 95th Congress, and
+distinguished guests:
+
+In accordance with the Constitution, I come before you once again to report
+on the state of the Union.
+
+This report will be my last--maybe--[ laughter ]--but for the Union it is
+only the first of such reports in our third century of independence, the
+close of which none of us will ever see. We can be confident, however, that
+100 years from now a freely elected President will come before a freely
+elected Congress chosen to renew our great Republic's pledge to the
+Government of the people, by the people, and for the people.
+
+For my part I pray the third century we are beginning will bring to all
+Americans, our children and their children's children, a greater measure of
+individual equality, opportunity, and justice, a greater abundance of
+spiritual and material blessings, and a higher quality of life, liberty,
+and the pursuit of happiness.
+
+The state of the Union is a measurement of the many elements of which it is
+composed--a political union of diverse States, an economic union of varying
+interests, an intellectual union of common convictions, and a moral union
+of immutable ideals.
+
+Taken in sum, I can report that the state of the Union is good. There is
+room for improvement, as always, but today we have a more perfect Union
+than when my stewardship began.
+
+As a people we discovered that our Bicentennial was much more than a
+celebration of the past; it became a joyous reaffirmation of all that it
+means to be Americans, a confirmation before all the world of the vitality
+and durability of our free institutions. I am proud to have been privileged
+to preside over the affairs of our Federal Government during these eventful
+years when we proved, as I said in my first words upon assuming office,
+that "our Constitution works; our great Republic is a Government of laws
+and not of men. Here the people rule."
+
+The people have spoken; they have chosen a new President and a new Congress
+to work their will. I congratulate you--particularly the new Members--as
+sincerely as I did President-elect Carter. In a few days it will be his
+duty to outline for you his priorities and legislative recommendations.
+Tonight I will not infringe on that responsibility, but rather wish him the
+very best in all that is good for our country.
+
+During the period of my own service in this Capitol and in the White House,
+I can recall many orderly transitions of governmental responsibility--of
+problems as well as of position, of burdens as well as of power. The genius
+of the American system is that we do this so naturally and so normally.
+There are no soldiers marching in the street except in the Inaugural
+Parade; no public demonstrations except for some of the dancers at the
+Inaugural Ball; the opposition party doesn't go underground, but goes on
+functioning vigorously in the Congress and in the country; and our vigilant
+press goes right on probing and publishing our faults and our follies,
+confirming the wisdom of the framers of the first amendment.
+
+Because of the transfer of authority in our form of government affects the
+state of the Union and of the world, I am happy to report to you that the
+current transition is proceeding very well. I was determined that it
+should; I wanted the new President to get off on an easier start than I
+had.
+
+When I became President on August 9, 1974, our Nation was deeply divided
+and tormented. In rapid succession the Vice President and the President had
+resigned in disgrace. We were still struggling with the after-effects of a
+long, unpopular, and bloody war in Southeast Asia. The economy was unstable
+and racing toward the worst recession in 40 years. People were losing jobs.
+The cost of living was soaring. The Congress and the Chief Executive were
+at loggerheads. The integrity of our constitutional process and other
+institutions was being questioned. For more than 15 years domestic spending
+had soared as Federal programs multiplied, and the expense escalated
+annually. During the same period our national security needs were steadily
+shortchanged. In the grave situation which prevailed in August 1974, our
+will to maintain our international leadership was in doubt.
+
+I asked for your prayers and went to work.
+
+In January 1975 I reported to the Congress that the state of the Union was
+not good. I proposed urgent action to improve the economy and to achieve
+energy independence in 10 years. I reassured America's allies and sought to
+reduce the danger of confrontation with potential adversaries. I pledged a
+new direction for America. 1975 was a year of difficult decisions, but
+Americans responded with realism, common sense, and self-discipline.
+
+By January 1976 we were headed in a new direction, which I hold to be the
+right direction for a free society. It was guided by the belief that
+successful problem-solving requires more than Federal action alone, that it
+involves a full partnership among all branches and all levels of government
+and public policies which nurture and promote the creative energies of
+private enterprises, institutions, and individual citizens.
+
+A year ago I reported that the state of the Union was better--in many ways
+a lot better--but still not good enough. Common sense told me to stick to
+the steady course we were on, to continue to restrain the inflationary
+growth of government, to reduce taxes as well as spending, to return local
+decisions to local officials, to provide for long-range sufficiency in
+energy and national security needs. I resisted the immense pressures of an
+election year to open the floodgates of Federal money and the temptation to
+promise more than I could deliver. I told it as it was to the American
+people and demonstrated to the world that in our spirited political
+competition, as in this chamber, Americans can disagree without being
+disagreeable.
+
+Now, after 30 months as your President, I can say that while we still have
+a way to go, I am proud of the long way we have come together.
+
+I am proud of the part I have had in rebuilding confidence in the
+Presidency, confidence in our free system, and confidence in our future.
+Once again, Americans believe in themselves, in their leaders, and in the
+promise that tomorrow holds for their children.
+
+I am proud that today America is at peace. None of our sons are fighting
+and dying in battle anywhere in the world. And the chance for peace among
+all nations is improved by our determination to honor our vital commitments
+in defense of peace and freedom.
+
+I am proud that the United States has strong defenses, strong alliances,
+and a sound and courageous foreign policy.
+
+Our alliances with major partners, the great industrial democracies of
+Western Europe, Japan, and Canada, have never been more solid.
+Consultations on mutual security, defense, and East-West relations have
+grown closer. Collaboration has branched out into new' fields such as
+energy, economic policy, and relations with the Third World. We have used
+many avenues for cooperation, including summit meetings held among major
+allied countries. The friendship of the democracies is deeper, warmer, and
+more effective than at any time in 30 years.
+
+We are maintaining stability in the strategic nuclear balance and pushing
+back the specter of nuclear war. A decisive step forward was taken in the
+Vladivostok Accord which I negotiated with General Secretary Brezhnev-joint
+recognition that an equal ceiling should be placed on the number of
+strategic weapons on each side. With resolve and wisdom on the part of both
+nations, a good agreement is well within reach this year.
+
+The framework for peace in the Middle East has been built. Hopes for future
+progress in the Middle East were stirred by the historic agreements we
+reached and the trust and confidence that we formed. Thanks to American
+leadership, the prospects for peace in the Middle East are brighter than
+they have been in three decades. The Arab states and Israel continue to
+look to us to lead them from confrontation and war to a new era of
+accommodation and peace. We have no alternative but to persevere, and I am
+sure we will. The opportunities for a final settlement are great, and the
+price of failure is a return to the bloodshed and hatred that for too long
+have brought tragedy to all of the peoples of this area and repeatedly
+edged the world to the brink of war.
+
+Our relationship with the People's Republic of China is proving its
+importance and its durability. We are finding more and more common ground
+between our two countries on basic questions of international affairs.
+
+In my two trips to Asia as President, we have reaffirmed America's
+continuing vital interest in the peace and security of Asia and the Pacific
+Basin, established a new partnership with Japan, confirmed our dedication
+to the security of Korea, and reinforced our ties with the free nations of
+Southeast Asia.
+
+An historic dialog has begun between industrial nations and developing
+nations. Most proposals on the table are the initiatives of the United
+States, including those on food, energy, technology, trade, investment, and
+commodities. We are well launched on this process of shaping positive and
+reliable economic relations between rich nations and poor nations over the
+long term.
+
+We have made progress in trade negotiations and avoided protectionism
+during recession. We strengthened the international monetary system. During
+the past 2 years the free world's most important economic powers have
+already brought about important changes that serve both developed and
+developing economies. The momentum already achieved must be nurtured and
+strengthened, for the prosperity of the rich and poor depends upon it.
+
+In Latin America, our relations have taken on a new maturity and a sense of
+common enterprise.
+
+In Africa the quest for peace, racial justice, and economic progress is at
+a crucial point. The United States, in close cooperation with the United
+Kingdom, is actively engaged in this historic process. Will change come
+about by warfare and chaos and foreign intervention? Or will it come about
+by negotiated and fair solutions, ensuring majority rule, minority rights,
+and economic advance? America is committed to the side of peace and justice
+and to the principle that Africa should shape its own future, free of
+outside intervention.
+
+American leadership has helped to stimulate new international efforts to
+stem the proliferation of nuclear weapons and to shape a comprehensive
+treaty governing the use of oceans.
+
+I am gratified by these accomplishments. They constitute a record of broad
+success for America and for the peace and prosperity of all mankind. This
+administration leaves to its successor a world in better condition than we
+found. We leave, as well, a solid foundation for progress on a range of
+issues that are vital to the well-being of America.
+
+What has been achieved in the field of foreign affairs and what can be
+accomplished by the new administration demonstrate the genius of Americans
+working together for the common good. It is this, our remarkable ability to
+work together, that has made us a unique nation. It is Congress, the
+President, and the people striving for a better world.
+
+I know all patriotic Americans want this Nation's foreign policy to
+succeed. I urge members of my party in this Congress to give the new
+President loyal support in this area. I express the hope that this new
+Congress will reexamine its constitutional role in international affairs.
+
+The exclusive right to declare war, the duty to advise and consent on the
+part of the Senate, the power of the purse on the part of the House are
+ample authority for the legislative branch and should be jealously guarded.
+But because we may have been too careless of these powers in the past does
+not justify congressional intrusion into, or obstruction of, the proper
+exercise of Presidential responsibilities now or in the future. There can
+be only one Commander in Chief. In these times crises cannot be managed and
+wars cannot be waged by committee, nor can peace be pursued solely by
+parliamentary debate. To the ears of the world, the President speaks for
+the Nation. While he is, of course, ultimately accountable to the Congress,
+the courts, and the people, he and his emissaries must not be handicapped
+in advance in their relations with foreign governments as has sometimes
+happened in the past.
+
+At home I am encouraged by the Nation's recovery from the recession and our
+steady return to sound economic growth. It is now continuing after the
+recent period of uncertainty, which is part of the price we pay for free
+elections.
+
+Our most pressing need today and the future is more jobs--productive,
+permanent jobs created by a thriving economy. We must revise our tax system
+both to ease the burden of heavy taxation and to encourage the investment
+necessary for the creation of productive jobs for all Americans who want to
+work.
+
+Earlier this month I proposed a permanent income tax reduction of $10
+billion below current levels, including raising the personal exemption from
+$750 to $1,000. I also recommended a series of measures to stimulate
+investment, such as accelerated depreciation for new plants and equipment
+in areas of high unemployment, a reduction in the corporate tax rate from
+48 to 46 percent, and eliminating the present double taxation of dividends.
+I strongly urge the Congress to pass these measures to help create the
+productive, permanent jobs in the private economy that are so essential for
+our future.
+
+All the basic trends are good; we are not on the brink of another recession
+or economic disaster. If we follow prudent policies that encourage
+productive investment and discourage destructive inflation, we will come
+out on top, and I am sure we will.
+
+We have successfully cut inflation by more than half. When I took office,
+the Consumer Price Index was rising at 12.2 percent a year. During 1976 the
+rate of inflation was 5 percent.
+
+We have created more jobs--over 4 million more jobs today than in the
+spring of 1975. Throughout this Nation today we have over 88 million people
+in useful, productive jobs--more than at any other time in our Nation's
+history. But there are still too many Americans unemployed. This is the
+greatest regret that I have as I leave office.
+
+We brought about with the Congress, after much delay, the renewal of the
+general revenue sharing. We expanded community development and Federal
+manpower programs. We began a significant urban mass transit program.
+Federal programs today provide more funds for our States and local
+governments than ever before--$70 billion for the current fiscal year.
+Through these programs and others that provide aid directly to individuals,
+we have kept faith with our tradition of compassionate help for those who
+need it. As we begin our third century we can be proud of the progress that
+we have made in meeting human needs for all of our citizens.
+
+We have cut the growth of crime by nearly 90 percent. Two years ago crime
+was increasing at the rate of 18 percent annually. In the first three
+quarters of 1976, that growth rate had been cut to 2 percent. But crime,
+and the fear of crime, remains one of the most serious problems facing our
+citizens.
+
+We have had some successes, and there have been some disappointments.
+Bluntly, I must remind you that we have not made satisfactory progress
+toward achieving energy independence. Energy is absolutely vital to the
+defense of our country, to the strength of our economy, and to the quality
+of our lives.
+
+Two years ago I proposed to the Congress the first comprehensive national
+energy program--a specific and coordinated set of measures that would end
+our vulnerability to embargo, blockade, or arbitrary price increases and
+would mobilize U.S. technology and resources to supply a significant share
+of the free world's energy after 1985. Of the major energy proposals I
+submitted 2 years ago, only half, belatedly, became law. In 1973 we were
+dependent upon foreign oil imports for 36 percent of our needs. Today, we
+are 40-percent dependent, and we'll pay out $34 billion for foreign oil
+this year. Such vulnerability at present or in the future is intolerable
+and must be ended.
+
+The answer to where we stand on our national energy effort today reminds me
+of the old argument about whether the tank is half full or half empty. The
+pessimist will say we have half failed to achieve our 10-year energy goals;
+the optimist will say that we have half succeeded. I am always an optimist,
+but we must make up for lost time.
+
+We have laid a solid foundation for completing the enormous task which
+confronts us. I have signed into law five major energy bills which contain
+significant measures for conservation, resource development, stockpiling,
+and standby authorities. We have moved forward to develop the naval
+petroleum reserves; to build a 500-million barrel strategic petroleum
+stockpile; to phase out unnecessary Government allocation and price
+controls; to develop a lasting relationship with other oil consuming
+nations; to improve the efficiency of energy use through conservation in
+automobiles, buildings, and industry; and to expand research on new
+technology and renewable resources such as wind power, geothermal and solar
+energy. All these actions, significant as they are for the long term, are
+only the beginning.
+
+I recently submitted to the Congress my proposals to reorganize the Federal
+energy structure and the hard choices which remain if we are serious about
+reducing our dependence upon foreign energy. These include programs to
+reverse our declining production of natural gas and increase incentives for
+domestic crude oil production. I proposed to minimize environmental
+uncertainties affecting coal development, expand nuclear power generation,
+and create an energy independence authority to provide government financial
+assistance for vital energy programs where private capital is not
+available.
+
+We must explore every reasonable prospect for meeting our energy needs when
+our current domestic reserves of oil and natural gas begin to dwindle in
+the next decade. I urgently ask Congress and the new administration to move
+quickly on these issues. This Nation has the resources and the capability
+to achieve our energy goals if its Government has the will to proceed, and
+I think We do.
+
+I have been disappointed by inability to complete many of the meaningful
+organizational reforms which I contemplated for the Federal Government,
+although a start has been made. For example, the Federal judicial system
+has long served as a modal for other courts. But today it is threatened by
+a shortage of qualified Federal judges and an explosion of litigation
+claiming Federal jurisdiction. I commend to the new administration and the
+Congress the recent report and recommendations of the Department of
+Justice, undertaken at my request, on "the needs of the Federal Courts." I
+especially endorse its proposals for a new commission on the judicial
+appointment process.
+
+While the judicial branch of our Government may require reinforcement, the
+budgets and payrolls of the other branches remain staggering. I cannot help
+but observe that while the White House staff and the Executive Office of
+the President have been reduced and the total number of civilians in the
+executive branch contained during the 1970's, the legislative branch has
+increased substantially although the membership of the Congress remains at
+535. Congress now costs the taxpayers more than a million dollars per
+Member; the whole legislative budget has passed the billion dollar mark.
+
+We have made some progress in cutting back the expansion of government and
+its intrusion into individual lives, but believe me, there is much more to
+be done--and you and I know it. It can only be done by tough and
+temporarily painful surgery by a Congress as prepared as the President to
+face up to this very real political problem. Again, I wish my successor,
+working with a substantial majority of his own party, the best of success
+in reforming the costly and cumbersome machinery of the Federal
+Government.
+
+The task of self-government is never finished. The problems are great; the
+opportunities are greater.
+
+America's first goal is and always will be peace with honor. America must
+remain first in keeping peace in the world. We can remain first in peace
+only if we are never second in defense.
+
+In presenting the state of the Union to the Congress and to the American
+people, I have a special obligation as Commander in Chief to report on our
+national defense. Our survival as a free and independent people requires,
+above all, strong military forces that are well equipped and highly trained
+to perform their assigned mission.
+
+I am particularly gratified to report that over the past 2½ years, we have
+been able to reverse the dangerous decline of the previous decade in real
+resources this country was devoting to national defense. This was an
+immediate problem I faced in 1974. The evidence was unmistakable that the
+Soviet Union had been steadily increasing the resources it applied to
+building its military strength. During this same period the United States
+real defense spending declined. In my three budgets we not only arrested
+that dangerous decline, but we have established the positive trend which is
+essential to our ability to contribute to peace and stability in the
+world.
+
+The Vietnam war, both materially and psychologically, affected our overall
+defense posture. The dangerous anti-military sentiment discouraged defense
+spending and unfairly disparaged the men and women who serve in our Armed
+Forces.
+
+The challenge that now confronts this country is whether we have the
+national will and determination to continue this essential defense effort
+over the long term, as it must be continued. We can no longer afford to
+oscillate from year to year in so vital a matter; indeed, we have a duty to
+look beyond the immediate question of budgets and to examine the nature of
+the problem we will face over the next generation.
+
+I am the first recent President able to address long-term, basic issues
+without the burden of Vietnam. The war in Indochina consumed enormous
+resources at the very time that the overwhelming strategic superiority we
+once enjoyed was disappearing. In past years, as a result of decisions by
+the United States, our strategic forces leveled off, yet the Soviet Union
+continued a steady, constant buildup of its own forces, committing a high
+percentage of its national economic effort to defense.
+
+The United States can never tolerate a shift in strategic balance against
+us or even a situation where the American people or our allies believe the
+balance is shifting against us. The United States would risk the most
+serious political consequences if the world came to believe that our
+adversaries have a decisive margin of superiority.
+
+To maintain a strategic balance we must look ahead to the 1980's and
+beyond. The sophistication of modern weapons requires that we make
+decisions now if we are to ensure our security 10 years from now.
+Therefore, I have consistently advocated and strongly urged that we pursue
+three critical strategic programs: the Trident missile launching submarine;
+the B-1 bomber, with its superior capability to penetrate modern air
+defenses; and a more advanced intercontinental ballistic missile that will
+be better able to survive nuclear attack and deliver a devastating
+retaliatory strike.
+
+In an era where the strategic nuclear forces are in rough equilibrium, the
+risks of conflict below the nuclear threshold may grow more perilous. A
+major, long-term objective, therefore, is to maintain capabilities to deal
+with, and thereby deter, conventional challenges and crises, particularly
+in Europe.
+
+We cannot rely solely on strategic forces to guarantee our security or to
+deter all types of aggression. We must have superior naval and marine
+forces to maintain freedom of the seas, strong multipurpose tactical air
+forces, and mobile, modern ground forces. Accordingly, I have directed a
+long-term effort to improve our worldwide capabilities to deal with
+regional crises.
+
+I have submitted a 5-year naval building program indispensable to the
+Nation's maritime strategy. Because the security of Europe and the
+integrity of NATO remain the cornerstone of American defense policy, I have
+initiated a special, long-term program to ensure the capacity of the
+Alliance to deter or defeat aggression in Europe.
+
+As I leave office I can report that our national defense is effectively
+deterring conflict today. Our Armed Forces are capable of carrying out the
+variety of missions assigned to them. Programs are underway which will
+assure we can deter war in the years ahead. But I also must warn that it
+will require a sustained effort over a period of years to maintain these
+capabilities. We must have the wisdom, the stamina, and the courage to
+prepare today for the perils of tomorrow, and I believe we will.
+
+As I look to the future--and I assure you I intend to go on doing that for
+a good many years--I can say with confidence that the state of the Union is
+good, but we must go on making it better and better.
+
+This gathering symbolizes the constitutional foundation which makes
+continued progress possible, synchronizing the skills of three independent
+branches of Government, reserving fundamental sovereignty to the people of
+this great land. It is only as the temporary representatives and servants
+of the people that we meet here, we bring no hereditary status or gift of
+infallibility, and none follows us from this place.
+
+Like President Washington, like the more fortunate of his successors, I
+look forward to the status of private citizen with gladness and gratitude.
+To me, being a citizen of the United States of America is the greatest
+honor and privilege in this world.
+
+From the opportunities which fate and my fellow citizens have given me, as
+a Member of the House, as Vice President and President of the Senate, and
+as President of all the people, I have come to understand and place the
+highest value on the checks and balances which our founders imposed on
+government through the separation of powers among co-equal legislative,
+executive, and judicial branches. This often results in difficulty and
+delay, as I well know, but it also places supreme authority under God,
+beyond any one person, any one branch, any majority great or small, or any
+one party. The Constitution is the bedrock of all our freedoms. Guard and
+cherish it, keep honor and order in your own house, and the Republic will
+endure.
+
+It is not easy to end these remarks. In this Chamber, along with some of
+you, I have experienced many, many of the highlights of my life. It was
+here that I stood 28 years ago with my freshman colleagues, as Speaker Sam
+Rayburn administered the oath. I see some of you now--Charlie Bennett, Dick
+Bolling, Carl Perkins, Pete Rodino, Harley Staggers, Tom Steed, Sid Yates,
+Clem Zablocki-and I remember those who have gone to their rest. It was here
+we waged many, many a lively battle--won some, lost some, but always
+remaining friends. It was here, surrounded by such friends, that the
+distinguished Chief Justice swore me in as Vice President on December 6,
+1973. It was here I returned 8 months later as your President to ask not
+for a honeymoon, but for a good marriage.
+
+I will always treasure those memories and your many, many kindnesses. I
+thank you for them all.
+
+My fellow Americans, I once asked you for your prayers, and now I give you
+mine: May God guide this wonderful country, its people, and those they have
+chosen to lead them. May our third century be illuminated by liberty and
+blessed with brotherhood, so that we and all who come after us may be the
+humble servants of thy peace. Amen.
+
+Good night. God bless you.
+
+
+
+*** END OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY GERALD R. FORD ***
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